The government will issue before the end of the year the order granting incentives to the electric vehicle (EV) industry, according to Trade Undersecretary Ceferino Rodolfo.
The EV Industry Strategy (EVIS) which will support the manufacturing and assembly of EVs as well as the infrastructure like charging stations, targets the production of 6.3 million EVs under the clean energy scenario (CES) or 1.7 million units under a business as usual (BAU) scenario and 147,000 EV charging stations under CES or 42,000 under BAU by 2040.
Rodolfo told reporters on the sidelines of the 12th EV Summit at the SMX Convention Center in Pasay City yesterday, EVIS is similar to the Comprehensive Automotive Resurgence Strategy (CARS) with more lenient requirements.
Rodolfo said the program will not be limited to a few players like CARS which also set high hurdles that met the ambitions of the time.
EVIS will be longer at eight years compared to CARS, six years.
“(EV) is an emerging technology so we want it to be more inclusive,” Rodolfo said.
He said performance parameters will be set, including a minimum investment to be qualified plus compliance to local content
of 50 percent.
The EVIS incentives will be in the form of income tax deduction certificates that can be availed for 10 years.
There will be no limit to the number of models. EVIS will also not be limited to the passenger car segment.
Like CARS, EVIS will give fixed investment support (FIS) and production volume incentives. FIS will support the capital expenditure for tooling equipment and research to manufacture the model.
Rodolfo emphasized EVIS is focused on manufacturing.
“If we are to provide support PUV (Public Utility Vehicle) Modernization, it should be something that creates jobs and not directed to Imports. So we are finding and developing the solution. And PUV Modernization is a great opportunity to jumpstart local assembly and manufacturing and most especially of EVs,” he added.
Rodolfo said the government recognizes the EV industry is in its nascent stage and the fast pace with which technology advances.
“Partnerships with other companies which have the technology and which are willing to support localization is important,” Rodolfo said.
